Shanxi Coking Coal's Xiqu mine resumes output after safety overhaul

Shanxi Coking Coal Energy Group Co., Ltd. has resumed production at its Xiqu mine from August 26, 2026, following a safety-driven suspension that began August 5.

The mine halted operations after a safety incident, prompting the company to conduct rectification work and address identified hazards. Taiyuan's emergency management and coal mine safety supervision authorities approved the resumption after passing on-site inspections.

The Xiqu mine has an approved annual capacity of 2.7 million tonnes, accounting for 5.67% of Shanxi Coking Coal's total certified capacity.

The company noted the suspension's impact on operations and financial results will be reflected in its audited financial reports.

Notably, the mine's capacity was previously reduced from 4 million tonnes per annum (Mtpa) to 2.7 Mtpa after failing to reach 70% of registered capacity for two consecutive years, per a Shanxi provincial energy bureau directive. The company completed the capacity transfer in Q1 2026, generating approximately 200 million yuan in proceeds.

Following Xiqu's restart, Shanxi Coking Coal still has two mines — Ximing and Zhenchengdi — suspended due to expired licenses, with combined certified capacity of 5.5 million tonnes, representing 11.55% of total capacity.

In its interim report, the company flagged risks of delayed license renewals amid tighter safety regulation, pledging to establish early-warning mechanisms for core permits.

Shanxi Coking Coal, the listed arm of China's largest coking coal producer Shanxi Coking Coal Group, operates 17 mines — 16 in production and one under construction — with coal reserves of 6.46 billion tonnes as of end-2025.

Raw coal output reached 46.87 million tonnes in 2025, down 0.74% year on year, with a 2026 target of 46.15 million tonnes, 1.54% below the previous year's level.

All of the company's mines are located in Shanxi, concentrated in the Jinzhong base and the core producing areas of Linfen and Luliang — regions that saw concentrated mine suspensions following the Changzhi accident.

Sxcoal survey data shows 52 coal mines remain suspended across Shanxi as of August 27, with combined capacity of 56.6 million tonnes per annum, led by Changzhi (21 mines), Luliang (13) and Jinzhong (10).

The company did not disclose first-half coal production and sales figures in its interim report, citing persistent safety risks inherent to its coal and power operations.

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